I do think that this is an acknowledgement that buses aren't going to meet everyone's needs, however I just can't see any North East residents using the scheme. Visitors - yes, if they want a mix of car rental and public transport to get around.
If it's targeted at NE residents however, then who with a driving licence is able to afford both public transport AND car rental when it's probably cheaper to just drive the whole way? Just seems like another case of bus companies thinking they know what drivers want.
RE: Flexility: new flexible mobility smartcard and bundled season ticket offer